In Washington, what is the minimum annualized earnings threshold for a Camp Margaritaville franchisee employee for a noncompetition covenant to be enforceable?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
RESORTS, LLC STATE OF WASHINGTON**
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail.
RCW 19.100.180 may supersede the Franchise Agreement in your relationship with the franchisor, including the area of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the area of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
According to Camp Margaritaville's 2025 Franchise Disclosure Document, in Washington, a noncompetition covenant is void and unenforceable against an employee of a franchisee unless the employee's earnings, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation. This is based on RCW 49.62.020.
For a Camp Margaritaville franchisee in Washington, this means that any non-compete agreements with employees are only enforceable if the employee earns above this threshold. If an employee earns less than $100,000 annualized (adjusted for inflation), the non-compete agreement is not valid.
Additionally, the FDD states that a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee if their earnings are less than $250,000 per year, based on RCW 49.62.030. The document also notes that any conflicting provisions in the franchise agreement are void and unenforceable in Washington.